What criminal offenses committed by a Benjamin Franklin Plumbing franchisee or owner can lead to termination?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1.13 If Franchisee or any Owner commits or is convicted of, pleads guilty to, or pleads no contest to a felony, a crime involving moral turpitude, or any other crime or offense that we believe is likely to have an adverse effect on the System, the Marks, or the goodwill associated with them.
Once Franchisee or any Owner has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual(s) charged be removed from any active role in the Franchised Business pending final disposition of the charges; and (ii) if the person(s) charged include the Key Person, to take over operation of the Franchised Business and to manage it on your behalf pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the commission of certain criminal offenses by a franchisee or owner can result in the termination of the franchise agreement. Specifically, if a franchisee or any owner commits, is convicted of, pleads guilty to, or pleads no contest to a felony, a crime involving moral turpitude, or any other crime or offense that Benjamin Franklin Plumbing believes is likely to have an adverse effect on the System, the Marks, or the goodwill associated with them, the franchise agreement can be terminated.
Benjamin Franklin Plumbing also has the right to require that any individual charged with a serious criminal offense be removed from any active role in the franchised business pending the final disposition of the charges. If the person charged is the Key Person, Benjamin Franklin Plumbing can take over the operation of the franchised business and manage it on the franchisee's behalf during this period. In such cases, Benjamin Franklin Plumbing may charge a reasonable management fee for their services.
This provision highlights the importance of maintaining a clean criminal record and adhering to ethical standards for both the franchisee and any owners involved in the Benjamin Franklin Plumbing franchise. Any criminal activity that could negatively impact the brand's reputation or the franchise system as a whole could lead to serious consequences, including the loss of the franchise. Prospective franchisees should carefully consider this clause and ensure they and their owners meet the required standards of conduct.